Flow Experiences Steep Decline In NFT Trading Activity
Flow, the decentralized blockchain created by Dapper Labs, has experienced a steep decline in nonfungible token (NFT) trading activity.
It has been reported that NFT platforms on the Flow blockchain, such as NBA Top Shot and NFL All Day, have seen month-after-month volume decreases. The blockchain popularized by NBA Top Shot dropped from about $39m to $15.5m in volume, according to DappRadar.
However, this drastic decrease surprisingly occurred in the span of around 2 months. In December, the NFT trading volume was lower than the previous month’s figure of $7.7m. According to Crypotslam, NBA Top Shot had its worst month in over two years, accumulating only $2.1m in market transactions. This is a decline of $4.9m when considering the project’s NFT volume from August.
The report said that the number of unique buyers also declined, sitting close to 7100 buyers. In addition, NFL All Day has seen a similar shrinkage in activity. The NFL All Day marketplace has thus far received around $1m worth of trading activity in the month of December. In other words, having its worst month since its inception.
Likewise, many companies, including Dapper Labs, the inventor of the Flow blockchain, laid off a portion of their workforce. Further, in November, the company reported a 22% decrease in employment; however, the specifics were not made available.
Thus, other networks that are associated with NFTs have also sharply declined, including Ethereum and Solana. Even though they didn’t fall as much, the entire NFT market has been experiencing the effects of this rough market. According to Dune Analytics, the overall volume of NFTs has decreased 97% since the start of the year.
Source: NFT Evening